Rite Aide, GNC join in Web deal

Each is buying a stake in Drugstore.com Inc.

Cyberspace

June 23, 1999|By BLOOMBERG NEWS

CAMP HILL, Pa. -- Rite Aid Corp., the third-largest U.S. drugstore chain, and General Nutrition Cos., the No. 1 U.S. specialty-vitamin retailer, said yesterday that they will buy stakes in Drugstore.com Inc. as part of a 10-year agreement to sell their products on the World Wide Web.

Rite Aid agreed to invest $7.6 million for 25.3 percent of Drugstore.com, a closely held online retailer of health care products. General Nutrition will pay $2.4 million for 8 percent. Drugstore.com will have exclusive rights to Internet sales of GNC products and the Rite Aid/GNC PharmAssure brand of vitamins and supplements, to be introduced in the fall.